Vietnam Ramps Up Coal Imports as it Struggles to Transition to Renewable Energy

Recent reports have revealed that Vietnam is ramping up coal imports despite its abundant renewable energy resources as well as its commitment to ditching fossil fuels. Vietnam currently generates more solar energy than any other country in Southeast Asia and has some of the most progressive renewable energy policies and goals in the region.

However, forecasts from the International Energy Agency show that Vietnam was one of the top 5 coal importers in 2024 after its imports surpassed Taiwan’s. Like many other countries that are trying to make renewables their dominant source of energy, Vietnam is struggling to develop its energy grid at an adequate pace and keep up with the rising energy demand.

As a result, Vietnam is looking to rely on coal for its energy needs in the near future as it prepares its national grid for the transition to renewables. While coal could help the country plug its energy shortfall in the short term, using the fossil fuel goes against Vietnam’s plans to steadily remove coal from the national energy mix for the next 6 years until it supplies just 20% of the country’s energy.

Ideally, renewables like solar, wind, and hydropower will fill the gap left by coal and provide Vietnamese households and businesses with clean energy. However, poor rains coupled with extreme heat crippled hydropower production in 2024 and caused a spike in energy prices that pushed the government to up its coal imports. The grid issues have also resulted in power outages that have affected countless businesses and factories in the country.

Vietnam’s manufacturing segment is growing larger by the year as buyers seek an alternative to Chinese manufacturing, which is putting more strain on the grid. Energy shortages in the country have forced major firms like Samsung and Toyota supplier Giai Phong Rubber to reportedly temporarily halt their operations in Vietnam or invest in renewable energy equipment.

Vietnam’s current energy grid is significantly outdated and cannot handle the transition to renewables, let alone the massive spike in energy demand that will come from industry-wide electrification. Furthermore, the new grid infrastructure being added still isn’t sufficient enough to deal with the surge in energy demand, leaving Vietnam unable to fulfill its energy needs with green energy.

Coal can help Vietnam meet its growing energy demands without having to invest in costly grid improvements and allow it to fulfill its energy needs in the interim while the necessary grid improvements are made. The decision to import more coal has ruffled feathers in the green energy industry and will undoubtedly have an impact on Vietnam’s greenhouse gas emissions, especially as its manufacturing segment ramps up production.

Companies like Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) have a huge responsibility to ramp up the production of critical minerals so that as countries upgrade their energy grids, needed metals like copper are available to address their needs.

NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF

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